Silver is pushing back up towards $25 an ounce as traders and investors await the latest US employment figures that will provide a better insight into how well the world’s largest economy is faring.
Silver has been on a strong run since the second half of August as attention has finally switched to the metal’s strong fundamental outlook, which sees demand outpacing supply for the foreseeable future.
While industrial demand hasn’t materially changed, silver’s prospects were dented by the focus instead being on the Federal Reserve, and other central banks, series of interest rate hikes which reduced the appeal of the non-yielding bearing of physical silver.
Now with the Fed in particular looking to be very close to the end of its rate hike cycle, this has enabled silver to make considerable gains with the metal’s excellent conductivity making it a key component in the energy transition.
With this dynamic unlikely to change for many months yet, September could see further gains for silver with $26 the first major target followed by the highs of the last two years just above that threshold.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
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